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HomeMy WebLinkAbout05-10-04 Personnel & Finance eoiranitiex c.R/ott of to �� otznd'and 9L zanaz &ommitt z The May 10,2004 meeting of the Personnel and Finance Committee was called to order by its Chairperson, Council Member Derek D. Dieter at 4:25 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Dieter,Pfeifer,Kelly,Puzzello, Varner, Kuspa,Coleman, White and Kirsits; City Clerk John Voorde, City Controller Rick 011ett,Assistant City Attorney Aladean DeRose, Gladys Kopola, Terry Bland of the South Bend Tribune,and Kathleen Cekanski-Farrand,Council Attorney. Council Member Dieter noted that the Committee is composed of Council Members Kelly,Pu7.7ello,Varner and himself. Council Member Dieter stated that the first item on the agenda was to review 2nd Substitute Bill No. 26-04 which would establish a new fund to be called a"Rainy Day Fund, Fund# 102". City Controller,Rick 011ett, made the presentation. He noted that the substitute bill incorporates many of the items discussed at the last Committee meeting with regard to language addressing a 10%cap;that interest earned would stay with the account; that if the fund is ever terminated that any remaining funds would be deposited into the General Fund. He noted that the primary purpose of the fund is to receive surplus COl I'and CEDIT monies which were being held by the county. Mr. 011ett stated that possible uses of the funds would include being a health and welfare contingency, address items being vandalized in the city parks, storm damage(noting that $600,000 was spent last year),overtime costs to have a police presence in the downtown and major corridors,being a self-insurance contingency fund for liability, etc. Dr. Varner inquired whether additional and future monies could be added to the fund, and was advised that they could. Ms. DeRose noted that she worked with the Council Attorney on the substitute version and that language has been included to permit additional monies to be received,noting that all monies would be subject to an appropropriation process. Council Member Deiter noted that at the last Committee meeting,Mr. 011ett indicated that the fund would receive approximately$2.2 million dollars of COIT/CEDIT monies. Mr. 011ett stated that that was correct. Dr. Varner inquired about other cash reserves, noting that it was his understanding that cash reserves go into the general fund if not used by a department by the end of the calendar year and then are used to fund capital needs. Personnel and Finance Committee Meeting of May 10,2004 Page 1 dmmjttzE c&E fiott of tiIE �E'L onn ail 9i»fin na �p i ifs s Ms. DeRose stated that it is her understanding that the city has cash reserves in other various accounts which are not planned to be transferred into this new rainy day account. Dr. Varner asked the City Controller to prepare a report addressing cash reserves; funding for capital needs; and year-end transfers. Council Member Deiter asked Mr. 011ett to also identify each fund which has cash reserves by name and account number and the projected amount of each,along with the information requested by Dr. Varner. Mr. 011ett indicated that he would update the Council. He noted that in prior years the city had a system of"use it or lose it"in the past with regard to departmental budgets. Council Member Kirsts noted that he had heard that Bremen tracks their river boat funds and believes that they too are placed into their rainy day account. Mr. 011ett stated that river boat funds are receipted into the city's general fund. Council Member Pfeifer voiced concern about the creation of a rainy day fund. She stated that CEDIT funds are targeted for specific uses most of which are capital or infra-structure related. She questioned why the extra CEDIT funds would not be used for such purposes since she has many streets in her district which could be addressed. Mr. 011ett stated that the funds to be placed into the rainy day fund are a"one-time deposit". Council Member Dieter noted that he shares many of the same concerns as Council Member Pfeifer, and asked Mr. 011ett to also address in his report the specific uses authorized by state law for CEDIT and COIT funds. The Council Attorney stated that she and Ms. DeRose briefly discussed the current version of the Bill which is now proposed to go into the South Bend Municipal Code. In light of the fact that the title to the Bill is substantially different, a new publication must take place resulting in the Bill having to be continued until the May 24th meeting. She added that she had sent a memo to the Council and to Ms. DeRose setting forth information from other communities as to how they addressed a rainy day fund in their communities. Council Member Dieter suggested that all of the requested information be made available before May 24th so that it could be reviewed and discussed at the Committee meeting to take place on May 24th. Personnel and Finance Committee Meeting of May 10,2004 Page 2 CommLtiz£ lk/2o' k of ti2£ 2£11,o12J2£L a»d 9inannr &,nznz 11 4 Following discussion, Council Member Kelly made a motion, seconded by Council Member Puzzello that 2nd Substitute Bill No. 26-04 be continued until May 24th. The motion passed. There being no further business to come before the Committee,Council Member Dieter adjourned the meeting at 4: 45 p.m. Respectfully submitted, Council Member Derek D. Dieter,Chairperson Personnel and Finance Committee KCF:kmf Attachment Personnel and Finance Committee Meeting of May 10,2004 Page 3